Global competition forces a pursuit to increase the economy’s innovative potential in order to compete on the market increasingly determined by new technologies. The EU economy also needs to meet these challenges. EU funds are one of the tools adopted by the European Union to achieve this goal. The paper’s research goal is to analyse the EU’s impact on the economy by means ofEU funds in terms of stimulating innovation. Since law and economy meet in the analysis of the discussed issues, methodological eclecticism has been applied by anchoring the research in the economic analysis of law. The paper discusses the legal framework of development of innovation and economic tools that implement the assumptions of the company's innovation enhancing policy. The study’s outcome involves a conclusion on whether the tools (aid funds) effectively contribute to boosting innovation of the EU economy. The analysis allows a statement that the EU policy has a positive impact on innovation of the economy, which is confirmed by comparative research of other economic areas. The said funds have led to increased performance in countries with a developed R+D sector and also in countries with a primary low share of innovation in the economy.